Atomic Owner to Acquire Salomon
SAM Magazine--Portland, Ore., May 5, 2005--The Amer Group of Finland is acquiring the Salomon winter sports division of Adidas-Salomon for about 485 million euros (approximately $627 million). The deal is expected to be completed by the end of September.
The sale includes Bonfire and Arc'Teryx apparel, Mavic (cycling components) and Cliché (skateboards and skate apparel) as well as Salomon. The purchase will make Amer Sports Corporation a leading global sports equipment company, with combined sales of more than $2 billion. In 2004, Salomon posted sales of 653 million euros (about $840 million) and an operating profit of 9 million euros (about $11.5 million). Amer Sports, which includes Wilson, Atomic, Suunto (sports instruments) and Precor (fitness equipment), reported sales of 1.04 billion euros ($1.3 billion) and earnings before interest and taxes of 100.5 million euros ($130 million).
Salomon has been part of the Adidas group for the past eight years. Sales fell 9 percent in the first quarter of 2005.
Adidas will focus on its athletic footwear and apparel divisions and hopes to expand its golf business, which includes the Taylor Made division that it acquired as part of the Salomon deal in 1997. \